Why do we buy organic? Integrating knowledge, attitudes and concerns in a simultaneous equation model for Spanish consumers

Abstract

The behavior of the consumer for organic products has been largely explored in the academic literature, based both on actual and intended purchases. In Mediterranean Europe (mainly Italy, Spain and Greece) studies have shown that attitudes towards organic food, importance attached to different organic food attributes (human health, safety, etc.) and consumers’ concerns towards the environment are the most important factors that explain consumers’ organic food purchase decisions At the same time other studies emphasize the importance of knowledge of organic production in consumer organic behavior. It is assumed that information about organic food helps consumers to transform the credence characteristic of such products into search attributes, thereby allowing the consumer to better evaluate the quality before deciding to buy the product. Integrating both approaches, this paper try to explain purchase organic food products in Spain taking into account the role played by not only attitudes and concerns, but also whether organic knowledge is affecting this decision. To achieve this goal a three-equation multivariate probit models is fitted where organic knowledge, the intention to purchase organic foods and, the final decision to purchase are the dependent variables. Data has been obtained from an ad-hoc survey conducted in two medium-sized Spanish cities.